Did You Know You Can Use Your Home Equity for Debt Consolidation?
Contributed by Stephanie Litaker
You've got a home, your home has equity, you have a way for debt consolidation
When you bought your home you probably thought about it as a place to live, but did you ever think about it as a way for debt consolidation? That's right, you can use your home equity for a loan to achieve your debt consolidation goals, and still have a place to live - as long as you pay your monthly mortgage payments of course. If you don't well then, that brings up an entirely different issue that isn't the subject of this article. So let's get back to the debt consolidation plan you're working on.
When you feel the heat of your creditor's breath on the back of your neck, and not to mention the smell of his tuna salad with onion sandwich he had for lunch, you may begin to feel like there's no place to turn and there's no way out of the hole you've been digging. But that's not true. If you own your home, you may want to talk to your lender about the possibility of borrowing a home equity loan as a way to finance your debt consolidation plan.
While it's true that when you get a home equity loan, you will be depleting the equity you've built in your home, but if you use the money to pay off your credit cards and for other bills in your debt consolidation plan, the savings may be worth it.
Don't want to use your home's equity, here's another option for debt consolidation
If you don't own your home, or if you simply don't like the idea of using your equity to pay off your bills, you may want to consider the services of a debt management program offered by a credit counseling service.
